In 2022 BIA completed two projects aimed at extending time in employment.
"Inspired by Experience: Longer Together - A Path to Success" (www.activeageing.bia-bg.com) is funded by the European Social Fund through the Human Resources Development Operational Programme. The project aims to address the challenges employers face regarding human resources management and industrial relations due to changing demographic trends and the ageing workforce. With joint efforts, the social partners aim to provide and maintain a working environment tailored to the specific age needs of different generations.
The eDigiStars project aims to build the digital entrepreneurial capacity of older people through an innovative learning platform and is funded by the Danube 2014-2020 Transnational Cooperation Programme. The PowerUp module motivates the elderly to acquire the necessary digital competencies to become employees/self-employed ICT service providers; the Campus module guides training course providers on how to effectively adapt their courses to the needs of the project's target group - people over 50. Finally, the Label module targets the different stakeholders in the labour market - labour offices and employers' organisations, ensuring the quality of the workforce by certifying their acquired knowledge and skills and building trustworthiness.
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The lack of workforce is visible in almost all spheres of economic life, and the lack of highly qualified specialists directly affects the competitiveness of Bulgarian companies. According to the latest census, the number of people of working age has decreased by 415 000 in the last ten years. However, this trend can only improve with adequate policies.
According to BIA's study, retirees in employment were 295,500 as of 2018. Moreover, their number increased by about 30 per cent between 2014 and 2018. These trends are naturally following the demographic crisis, which is becoming a disaster.
Manufacturing, education and healthcare are where the ageing workforce is primarily visible. However, there are also many employed people in education and health pre- and post-retirement. Unfortunately, there is a terrible shortage of health care and education staff, and although much has been done in recent years to attract more young people, there still needs to be more positive results. The proportion of pre- and post-retirement teachers is still high, and one of the reasons is the need for more young professionals to replace them.
The "youth arena" is the IT, financial and insurance sectors.
Generation T
The positive trend of increasing life expectancy naturally leads to a longer working life. The eligibility requirements for 2022 are as follows: men (64 years and five months of age) who have worked 39 years and two months and women (61 years and ten months) who have worked 36 years and two months. Gradually, by 2037, the two sexes will equalise in the age criterion and retire at 65. The process of significantly longer employment, combined with negative demographic processes leading to a decline in the total working-age population, determines the growing importance of the so-called Generation T (traditionalists). They grew up during the consolidation of socialism and the state-planned economy and have prolonged their stay at work as no one can replace them. Therefore, this is a particularly problematic issue in traditional industries, such as manufacturing, and it will worsen. The demographic replacement rate in Bulgaria is highly negative - 69, which means that 69 people replace every 100 who retire. The remaining 31 either remain employed or get substituted by other retirees. So gradually, we will see more working retirees.
Working after retirement is not that scary
According to experts, working past retirement age isn't that scary. It is a matter of personal perception, necessity or need. It is also necessary to provide appropriate working conditions tailored to the needs of the older generations. These people are extremely valuable, and employers aim to retain them no matter the costs.
The most expensive measures are adapting the jobs and improving work conditions for Generation T. Others are related to creating an environment that highlights the strengths of each generation. In-house measures that promote mutual understanding and solidarity between the generations in the interests of common business goals.
Youth versus experience
Typically, when people from different generations work in teams, conflicts related to attitudes toward work and new technologies arise, which are the most common reasons for workplace discrimination. Older people find it harder to adopt technological innovations, while younger colleagues cope better and faster. The traditional hierarchy breaks down at a certain point, and younger people grow professionally because of how they apply technology. As a result, we assume that older people are unfit for work. The team leader's task is to create an atmosphere of solidarity because Generation T is willing to learn and absorb technical innovations but needs enough time. Older employees prefer to avoid going on traditional courses to improve their digital skills but want this to take the form of exchanging workplace and company training experiences.
Conflicts also arise due to Generation T perception that professional growth and success come after years of hard work and the misconception of the younger, for whom success and promotion can happen 'overnight'.
Regarding the motivational factors that drive different generations, BIA's study debunks a myth about younger employees. For Gen Z (born between 1993 and 2001), it is not about the paycheck but rather the type of work that is paramount. For them, work needs to be challenging, meaningful and varied. Therefore, they are looking for exciting projects and endeavours, causes to which they devote their time, energy and passion.
Generation T in Europe
BIA partnered with 19 other organisations from 8 Danube countries in the eDigiStars project to enhance Gen T's digital skills. The project is based on the common understanding that more senior employees have a place regardless of nationality in the labour market, even in digital technology professions. Moreover, Gen T's needs in Central and Eastern European countries are similar. They require similar measures - appropriate motivation, tailored training and learning content, and a recognised certification system to determine the quality of training. Above all, however, is the change of attitudes - older employees must realise that modern work requires continuous improvement and upgrading of existing knowledge and skills.
